Estee Lauder, a cosmetics company has a successful reputation due to its marketing strategies. The task of this essay is to analyse two of its successful product based marketing strategies; Clinique and Beautiful, the roles played by the Institution of marketing and how these strategies ratchet up socialised spending.
Most of the products in the cosmetics industry offer similar characteristics for example Estee Lauder sells cream to moisturise the skin but as do other companies such as Revlon1 or Chanel2. Here the economic problem of abundance (Petrick and Sheehan p.8 2004) arises; how does Estee Lauder persuade consumers to consume their products and keep consuming them over what is already available? They do so using various marketing techniques under the guise of the Institution of Marketing. Conventionally it is suggested that demand for a product dictates the supply. So then demand is created by consumers wanting something, it is logical to assume then, that consumers create demand. But armed with IoM a corporate lead market such as the market of Estee Lauder creates demand. So the idea then, that demand dictates supply is not entirely true as Glabraith argues that the truth creates a consensus and in the short run, the same way as acceptability does (Galbraith p.7 1999). Acceptability being; demand dictates supply which is also known as the ‘Conventional Wisdom’. This idea can be further supported by Schumpeter with his idea of creative destruction (Schumpeter 1996) where by an entrepreneur looks for a new idea or market to sell something to people who did not know it was needed. So Estee Lauder being an entrepreneur, launching new products and using the IoM to market them creates demand for products and the way it is done will be explored in this essay.